Tax Credit LoansOn June 2, 2019 by Debra Villegas
Tax credits are discounts on the tax. With this, the government wants to support certain groups. Think of parents, the elderly and the disabled.
They pay less tax with the tax credit. See if you are eligible for one of these discounts.
What tax credits are there?
There are different tax credits. For example, the employed person’s tax credit supports working people. The combination discount is meant to combine work and care.
We know the following tax credits:
- General tax credit
Anyone over 18 who pays income tax, even if you do not work.
- Labor discount
Anyone who does paid work, even if you also have a partial benefit.
- Income-dependent combination tax credit
Working parents with children younger than 12, single parent or least earning tax partner.
- Young handicapped discount
Anyone who is entitled to a Wajong benefit or to support in finding work according to the Wajong Act.
- Life-course leave discount
If you have saved in a life-course savings scheme and withdraw money from that savings account for unpaid leave.
- Discount for green investments
Green investments are investments in funds that are recognized by the tax authorities and that invest in projects for environmental protection.
- Elderly discount and single age discount
Tax credits for AOW beneficiaries.
Apply for a tax credit
General tax credit, tax credit and the elderly tax credit
You do not need to apply for the general tax credit, the employed person’s tax credit, the young disabled person’s tax credit and the older person’s discounts. Your employer or benefits agency automatically calculates these tax credits with your income.
Other tax credits
Do you think you are eligible for one of the other tax credits? Then you can apply for a provisional assessment at the tax authorities. With the application you fill in a number of data about your household and income. The discounts are automatically paid to you mid-month.
Request a provisional refund
A tax credit can make a lot of difference in what you have left over each month. Sometimes the refund can even cancel the tax amount to be paid. The tax authorities pay the provisional refund once a month.
Is the amount of tax credits higher than the amount that you have to pay in tax? Then you will miss part of the tax credits.
Pass on changes
Some tax credits apply only to certain households. And many tax credits are income-related. A change in your situation can therefore mean that you are no longer entitled to certain tax credits. Always report changes in your income and situation as quickly as possible to the tax authorities, then you will not be faced with any surprises.